Extension of Time for Filing of TDS/TCS Returns

The Central Board of Direct Taxes have extended the due date for filing of

quarterly statements of Tax Deducted at Source (TDS) and Tax Collected at Source

February 2008. This is in view of the difficulties being faced by the tax deductors /

collectors in filing statements with the correct PAN data mandatorily required to be

furnished to the extent of at least 90% in the cases of salaried deductees and 70% in

the cases of other deductees.

It may be recalled that as the requirement of filing TDS / TCS certificates had

been done away with, the lack of PAN of deductees was creating difficulties in giving

credit for the tax deducted and collected. It was, therefore, decided that TDS returns for

salaries, i.e. Form No.24Q with less than 90% of PAN data, and TDS returns for

payments other than salaries and TCS returns, i.e. Form No.26Q and Form No.27EQ

respectively, with less than 70% of PAN data would not be accepted for the quarter

ending on 30.9.2007 and thereafter. Tax deductors and tax collectors were, therefore,

advised to obtain correct PAN details of all deductees and quote the same in the TDS /

TCS returns, failing which the TDS / TCS returns would not be accepted and all penal

consequences under the Income Tax Act would follow. Taxpayers liable to TDS / TCS

were also advised to furnish their correct PAN with their deductors, failing which they

would also face penal proceedings under the Income Tax Act.

It may also be recalled that for and from the quarter ending 30.9.2007, in

addition to government offices and companies, filing of TDS / TCS returns in electronic

form has been made mandatory for (i) deductors / collectors required to get their

accounts audited under section 44AB of the Income-tax Act in the immediately

preceding financial year, and (ii) where the number of deductees’ / collectees’ records

in a quarterly statement for any quarter of the immediately preceding financial year is

equal to more than fifty.